Highland adopts $6.9 million budget BY JAMES JACENICH • STAFF WRITER
MONTEREY - The Highland County Board of Supervisors adopted a $6,961,108 county budget Tuesday night.
"There are some changes from last week's proposed budget," said county administrator Roberta Lambert. Valley Program for Aging Services received an additional $5,000 and the commissioner of revenue received $1,000 more for travel.
"Expenditures exceed revenues by $99,019," said Lambert. That amount will be transferred from the general fund to make the budget balance. In other words, expenses will exceed revenues this year.
"We're collecting less than we spend," said supervisor Jerry Rexrode.
"Not to worry," said Lambert. "That's why we have twice a year tax collection." Twice a year collection means money will be entering the general fund more often than in the past, allowing more leeway on how the general fund is used to balance the budget.
The county had $1.5 million in an undesignated fund June 30, 2006, Lambert said. That was before real estate taxes were collected. Think of the undesignated fund as the county's savings account, she said. The money in the fund carries over from year to year.
That the county is spending more than it anticipates taking in during the next 12 months is of concern, supervisors said. At some point the county will have to increase taxes or cut costs.
"The standard practice and the recommendation from our auditors is for the local government to maintain a fund balance of at least 10-15 percent of the budget, or approximately $700,000 to $1.1 million for government operations," said Lambert.
Highland County has more in its general fund than the auditors recommend, so it can afford to spend down some of that money.
Supervisors chose to transfer money from the general fund to the operating fund to balance the budget. Even with a balanced budget, though, expenses still exceed income for this coming year.
In fiscal year 2004, the county transferred $184,445 from the general fund; in fiscal year 2005, $106,088; in fiscal year 2006, $138,694; and in fiscal year 2007, $193,431.
Transferring more money from the general fund than anticipated explains how the proposed balanced budget of a week ago could be increased by $6,000 without affecting the tax rate.
The tax rate will remain in fiscal year 2008 as it has been in fiscal year 2007 - 38 cents on each $100 of assessed value on all taxable real estate and $1.50 on each $100 of average value on all tangible property.
Supervisors also adopted the solid waste collection and disposal budget and enterprise fee.Total cost for collection and disposal is expected to be $281,386 for 2007-08, an increase of $2,186 from the year before. Revenue, however, is expected to go up $1,000 in 2006-07 to $285,000.
The enterprise fee remains at $150 for residential, $75 for low-density business, $150 for low-medium density businesses, $225 for medium-density businesses and $300 for high-density businesses.
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